Delaware Announces Plans to Send Out-of-Compliance Notices in October

On Sept. 29, 2017, the Delaware secretary of state issued a statement announcing his office plans to send notices beginning in two weeks to unclaimed property holders identified as out of compliance with the state’s unclaimed property reporting requirements.

Holders who receive the letter will have 60 days to enter into the state’s SOS VDA Program or be referred to the state escheator for examination.

The full text of the notice follows:

As an unclaimed property professional who has represented Holders in the Delaware unclaimed property audit and/or SOS VDA Program, you should be aware of an important update about the Delaware SOS VDA Program.

In two weeks, my office will begin mailing notices to Holders who have been identified as likely being out of compliance with Delaware law as it relates to reporting dormant abandoned or unclaimed property. Holders that do not enroll in the SOS VDA Program within 60 days of the mailing of this notice will be referred to the State Escheator for examination. If an audit notice is issued, the Department of State will have no legal ability to accept a Holder into the SOS VDA Program.

The SOS VDA Program was put in place to respond to concerns about Delaware’s ongoing audit program, and to encourage more companies to come into compliance with their legal responsibilities as they relate to abandoned property. Through recent changes in the law, Delaware is providing every company with an opportunity to voluntarily comply prior to being issued an examination notice. We urge you, your clients and potential clients to take advantage of this opportunity to enroll in the SOS VDA Program.

This information may be shared as you deem appropriate. Any questions can be directed to Alison Iavarone at alison.iavarone@state.de.us or at 302-577-8959.